Tritax Big Box REIT PLC on Wednesday noted improving capital market conditions, as the Bank of England starts to cut UK interest rates.
The London-based real estate investment trust invests in large logistics warehouses. It said net asset value per share rose 1.3% to 177.36 pence as at June 30 from 175.13p a year prior.
Tritax Big Box declared an interim dividend of 3.65 pence per share, up 4.3% from 3.50p a year prior. Tritax plans to pay three interim dividends of 1.825p each, each equivalent to 25% of the 2023 full-year payout of 7.30p. A final dividend will be determined by adjusted earnings achieved in 2024.
Looking ahead, Chair Aubrey Adams said: ‘Our active discussions with potential clients reflect considerable pent-up demand, while the conclusion of the general election and expectations of further interest rate cuts are likely to increase business confidence and crystallise occupier leasing decisions. These green shoots bode well for a more buoyant occupational market into late 2024 and 2025, with reducing vacancy and a continuation of rental growth.
‘The outlook for the capital market is also positive. We believe substantial amounts of capital is looking to deploy into UK logistics given its attractive, and structurally supported characteristics. Combined with improving capital market conditions, we see prospects for yield compression in the medium term.’
Tritax Big Box shares were 1.1% higher at 161.20 pence each on Wednesday morning in London.
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